I've been on autopilot and am letting the CMI do the driving. The early buy of the QLD has paid off so far with something like an 8% gain so far. Following the CMI signal exactly, the current gain would be 5% or so. I am purposely hold back from placing a stop just to give this upward move a chance without stopping out. My intent is to hold through the weekend and put my faith in a textbook CMI run-up.
The rule of thumb is to place the first stop where I can take half of an 8% gain and then keep a 4-5% runnnnnning stop below the QLD price. Ideally, I would run the stop right up to a 20% gain. "Easier said than done" and "rules were made to be broken" come to mind after stating my stop rule mantra.
Thursday, March 26, 2009
Cruise Control and Trailing Stops
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Cheetum Method